51�Թ���

Washington, D.C. – On the heels of the landmark tax bill’s passage, manufacturers’ optimism has jumped—even as challenges persist across the sector. The 51�Թ���’ Q3 2025 Manufacturers’ Outlook Survey found a 10-percentage-point increase in confidence, with 65.0% of respondents reporting a positive outlook for their companies, up from 55.4% in Q2.

Yet, consistent with last quarter, respondents pointed to the same top business concerns—each edging higher than in Q2:

• Trade uncertainty: 78.2% (up from 77.0%)
• Rising raw material costs: 68.1% (up from 66.1%)
• Increasing health care costs: 65.1% (up from 60.0%)

“These results confirm what we’ve seen in the economic data—that the sector is still enormously challenged as manufacturing output took four months to recover from this spring’s dip, and optimism still falls below the survey’s historical average of 74%,” said 51�Թ��� President and CEO Jay Timmons.

“To supercharge the increase in optimism we’re starting to see, manufacturers need certainty across a full manufacturing strategy spanning sensible trade policy, permitting reform to unleash American energy dominance, modernized regulations and workforce investments,” Timmons said. “Put another way, so long as this uncertainty persists, manufacturers will not be able to tap fully into the strength of President Trump’s monumental and historic tax provisions, championed by our allies in the White House and Congress.”

“The third quarter optimism level aligns with August’s production data released by the Federal Reserve, which showed that manufacturing output was 100.3% of its 2017 average, barely above March’s level of 100.2%, taking four months to recover from April’s drop,” said 51�Թ��� Chief Economist Victoria Bloom.

“At the same time, manufacturers are projecting moderate growth over the next 12 months with production expected to rise 2.5% (up from 1.4% in Q2) and capital investments 1.0% (up from 0.3%),” Bloom said. “Costs are still expected to climb, but at a slightly slower pace than Q2, with raw material and input costs projected to increase 5.4% (down from 5.8%) and product prices up 3.7% (down from 4.3%). These findings reflect both the resilience of the sector and the real challenges still weighing on growth.”

The 51�Թ��� releases these results to the public each quarter. Further information on the survey is available here.

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector rese arch and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit .

A recent invention by ExxonMobil could significantly change the electric vehicle battery game: a new kind of graphite (, subscription).

What’s going on: “We’ve invented a new carbon molecule that will extend the life of the battery by 30%,” Chairman and CEO Darren Woods said at the University of Texas at Austin’s Energy Symposium last Friday. He added that it’s a “revolutionary step change in battery performance.”

• Graphite plays a critical role in lithium-ion EV batteries, which the energy giant invented in the 1970s. The crystalline form of carbon helps lithium, a crucial battery component, maintain structural integrity and ensures that the batteries remain stable during charging and discharging cycles.
• ExxonMobil  last week that it had acquired “key assets and technology” from Chicago-based graphite firm Superior Graphite to “complement [its] planned entry into the battery anode graphite market.”

Why it’s important: “Used on the anode side of the battery, the synthetic graphite allows for faster charging, a longer lifespan and longer range for electric vehicles.”

What’s next: While ExxonMobil isn’t planning to go into EV battery production, it says it will use its refineries, laboratories and plants to manufacture some of the materials for batteries—and begin extracting lithium, too.

• “[W]e do have capability of transforming molecules, and there are enormous opportunities in that space to use hydrogen and carbon molecules to meet the growing demand,” Woods said.

The 51�Թ��� is the Department of Justice to address the patchwork of state laws that are driving up costs and threatening U.S. manufacturing competitiveness.

• The DOJ requested public input on state laws that have “significant adverse effects on the national economy or interstate commerce,” by either creating barriers for businesses operating nationwide or undermining federal authority.

Why it matters: Manufacturers face rising compliance burdens and liability risks as they attempt to fulfill inconsistent mandates across 50 states.

• Small and medium-sized manufacturers already more than $50,000 per employee each year on federal compliance, and the regulatory conflicts among the states are increasingly adding to those costs.

Our take:  The 51�Թ��� weighed in on more than a dozen regulatory priorities in environmental, energy, tech, health and food and beverage policy, emphasizing the following principles:

• Manufacturers need certainty. Legal and regulatory predictability is essential for manufacturers to invest, grow and create jobs.
• Federal preemption is critical where appropriate. Uniform national standards are needed in areas like AI, pharmaceuticals, food ingredient safety and labeling, greenhouse gas emissions and securities disclosures.
• Tort reform is urgent. Exploitive state lawsuits create conflicting outcomes and massive defense costs and divert resources away from innovation and job creation.

The bottom line: “Manufacturers need straightforward, standardized rules of the road that allow our industry to invest confidently, adopt new technologies swiftly and focus resources on productivity and jobs, ensuring America remains a leader in the global economy,” 51�Թ��� Vice President of Domestic Policy Jake Kuhns told the agency.

Washington, D.C.—The 51�Թ��� and CTIA today released a new joint report highlighting the key role 5G is playing in manufacturing in America. The report, “How 5G Is Modernizing Manufacturing,” explores how manufacturers and wireless providers are leveraging robust commercial 5G networks to fuel the Manufacturing 4.0 movement and make American factories safer, more efficient and more innovative—all while building a more resilient, secure and prosperous nation.

The report finds that to continue our rich history of innovation, production, and global leadership, America needs a robust 5G strategy that includes a pipeline of more licensed spectrum to support manufacturers’ ever-expanding use of 5G.

“5G is vital to the Manufacturing 4.0 movement that’s propelling America to be the global hub for smart, modern manufacturing,” said 51�Թ��� President and CEO Jay Timmons. “Manufacturers are harnessing 5G to make workplaces safer, boost efficiency and strengthen resilience across our operations. By enabling real-time actions and supporting new technologies like AI, 5G is giving manufacturers more tools to sharpen our competitive edge, support more people and secure America’s leadership in the global economy.”

The wireless and manufacturing sectors are working together to leverage 5G’s unprecedented speeds, low latency and high capacity to power new innovations—particularly through the use of AI.  According to the 2025 Future of Manufacturing Project Survey, “Shaping the AI-Powered Factory of the Future,” from the Manufacturing Leadership Council (the 51�Թ���’s digital transformation division), more than half of manufacturers already use AI in their operations, with 61% expecting investment in AI will increase by 2027. Impact on operational performance, cost savings and worker productivity/efficiency are all above 60%. 5G helps manufacturers deploy AI tools so they can evaluate large datasets and identify efficient solutions quickly—whether through supply chain management, predictive maintenance for machinery, quality control or improving the employee experience.

“The wireless industry is proud to partner with manufacturers to drive American innovation, productivity, and global leadership,” said CTIA President and CEO Ajit Pai. “To support the wireless data needs of manufacturers and other leading U.S. industries, it is imperative that  policymakers continue to take action to ensure additional mid-band spectrum is available for 5G.”

The report features real examples of how 5G is transforming manufacturing, including by:

• Powering VictoryXR and Taqtile’s AR headsets to provide immersive training, offering engaging upskilling opportunities while enhancing employee productivity and safety;
• Connecting Seegrid’s autonomous mobile robots to deliver heavy appliance parts safely around Whirlpool’s factory floor, freeing up employees for more complex tasks;
• Providing a real-time, high-definition monitoring system that leverages machine learning capabilities to improve quality control for Hitachi, identifying defects at a sub-millimeter level;
• Protecting Cummins’ intellectual property with highly secure 5G networks that also power robotics to bring materials around the facility, detect product defects, enhance employee training through AR/VR applications, and monitor equipment via sensor systems; and
• Powering innovation and productivity on the factory floor for many other manufacturers like Newport News Shipbuilding, General Motors, Rockwell Automation, Ericsson, Samsung, and more.

These innovations are driving the U.S. economy forward. Boston Consulting Group found that 5G networks will add $1.5 trillion in GDP and 4.5 million in jobs to America’s economy this decade alone.

As this report makes clear, 5G is not just a next-generation network—it’s the foundation for the future of manufacturing in America. By accelerating innovation, enhancing safety, enabling real-time decision-making and strengthening our industrial base, 5G empowers manufacturers to lead in a fiercely competitive global economy.

-������-��

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit .����

Mexico announced this week that it will raise tariffs by 50% on automobiles made by China and other Asian countries (, subscription).

A broad effort: The increase is part of a broad range of trade policy changes, “which will increase tariffs to varying degrees on goods across multiple sectors including textiles, steel and automotive [vehicles], would impact $52 billion of imports.”

• Mexican tariffs on Chinese cars currently stand at 20%.
• Other policy changes include a 35% tariff on steel, toys and motorcycles and tariffs on textiles of between 10% and 50%.

The rationale: “[Mexican Economy Minister Marcelo] Ebrard said the measures, which come just within limits imposed by the World Trade Organization, were intended to protect jobs in Mexico as Chinese cars were entering the local market ‘below what we call reference prices.’”

The big picture: Analysts see this move as an effort to align Mexican trade policy with the Trump administration’s aims, as the two countries continue to negotiate over their own trade ties.

• President Trump has urged U.S. trading partners to reduce their economic ties with China on security grounds.
• “‘The U.S. is not going to allow China to use Mexico as a backdoor,’ said Mariana Campero of the CSIS Americas Program, adding that Mexico has doubled its trade deficit with China in the last decade, hitting $120 billion last year.”

USMCA: The U.S.–Mexico–Canada Agreement, which the 51�Թ��� was instrumental during President Trump’s first term, is up for review in 2026.

• The 51�Թ��� remains one of the foremost backers of North American trade, at a time when of all imported manufacturing inputs now come to the U.S. from Canada and Mexico.
• The trade agreement has also been crucial in helping the U.S. outcompete China; today, U.S. imports of manufacturing inputs from North America are more than three times the quantity imported from China.

Making “draconian changes” to the Securities and Exchange Commission’s regulatory approach to non-U.S. companies could result in reduced foreign investment in U.S. manufacturing, among other negative repercussions, the 51�Թ��� the agency this week.

What’s going on: The 51�Թ��� has urged the SEC to “proceed cautiously” in considering changes to the definition of “foreign private issuer,” which are foreign-owned companies with shares that trade on American stock exchanges.

• FPIs have raised capital from U.S. investors and invested billions of dollars to expand their U.S. manufacturing operations, a trend that is expected to continue during the second Trump administration.
• The SEC exempts FPIs from many of the disclosure requirements that apply to domestic companies because FPIs are presumed to be closely regulated in their home countries.
• However, in recent years, there has been a surge of FPIs that are headquartered in China and/or incorporated in the Cayman Islands, prompting concern among SEC officials about whether there is sufficient regulatory oversight of these companies and protection for their U.S. investors.
• The SEC is considering tightening the FPI definition, which would reduce the number of foreign firms that qualify for FPI regulatory relief. Such an action would increase compliance costs for those companies that lose their FPI status.

Why it’s important: Without the accommodations under the current definition, “it may be difficult for [FPIs] to retain their dual listings in the United States—potentially threatening their ability to access capital in the U.S. and expand their U.S. operations,” the 51�Թ��� said.

• “While we share the [SEC’s] interest in protecting investors and ensuring that U.S. companies do not face undue regulatory burdens when competing with foreign firms, [overly strict adjustments] to the FPI definition … would have the unintended consequence of deterring foreign companies from raising the capital they need to expand their U.S. manufacturing operations,” the 51�Թ��� told the agency, in response to an SEC call for public input on possible eligibility changes.

What should be done: The 51�Թ��� outlined three alternative ways for a company to continue to qualify as an FPI:

• If it is traded on a major foreign stock exchange
• If it is based in a country with robust disclosure rules and investor protection regulations
• If its home country negotiates a Multijurisdictional Disclosure System agreement with the United States

In the eight months since President Trump took office, the 51�Թ��� has worked closely with the administration on modernized regulations to address the regulatory burden that manufacturers are facing.

• With the industry shouldering every year in regulatory costs, the 51�Թ��� has dozens of regulatory reforms to support the industry’s growth.
• The administration has responded to the 51�Թ���’s advocacy, delivering manufacturing wins in the form of lifting the liquefied natural gas export ban, rescinding Securities and Exchange Commission guidance that had empowered activist investors, reconsidering the previous administration’s unworkable PM2.5 standard and more.

Now, the administration has released its —which closely aligns with the 51�Թ���’s regulatory agenda and includes even more opportunities for collaboration between manufacturers and the administration.

What’s in it: The 51�Թ��� has identified more than 120 opportunities for regulatory reform in the unified agenda, in policy areas ranging from labor, to energy, to finance and much more. While the 51�Թ��� has been for many of these changes since the beginning, the agenda also includes new chances for meaningful reform.

• The 51�Թ��� is tracking all these potential victories for manufacturers, but three areas stand out as priorities, according to .

Modernizing EPA rules: The EPA is finalizing reviews of several rules from the Biden administration that would have imposed substantial burdens on manufacturers: the , the , the Good Neighbor Rule, multiple National Emission Standards for Hazardous Air Pollutants on , the , the Risk Management Program and the definition of “.”

• Manufacturers see these Biden-era rules as unworkable and harmful to investment. The 51�Թ��� will continue providing the industry’s perspectives to policymakers as they reconsider these regulations, Kuhns said.

Unlocking resources: The administration is pushing to reconcile the Interior Department’s critical minerals list and the Energy Department’s critical materials list—a goal the 51�Թ��� has .

• This reform could unleash manufacturers’ access to the raw materials required for the energy transition and the AI age, Kuhns noted.

Implementing tax reform: In the wake of manufacturers’ tremendous tax victory with the passage of H.R. 1, which made permanent many pro-growth tax provisions, the 51�Թ��� is working closely with the administration to ensure the implementation of the law is as effective as possible for manufacturers.

• The 51�Թ��� is helping to shape expedient, practical guidance that will maximize the benefits and minimize compliance burdens for manufacturers, Kuhns added.
• The tax law created a new deduction for manufacturing production facilities—a key implementation priority for the 51�Թ���.

The 51�Թ��� says: “The breadth of the agenda—and its alignment with manufacturers’ policy priorities—creates real potential for transformative regulatory reform, and it’s clear the administration is hearing us,” said Kuhns. “The 51�Թ��� will continue engaging agencies, convening member input and holding Washington accountable for practical, pro-growth outcomes.”

The politicization of the proxy process has harmed manufacturers and must be addressed, the 51�Թ��� told the House Committee on Financial Services on Tuesday.

What’s going on: “When manufacturers offer their shares to the public, it allows everyday Americans to participate in the industry’s success, largely through passive investments like mutual funds, pension plans and 401(k) accounts,” the 51�Թ��� lawmakers before a Wednesday hearing.

• But in recent years, shareholder activists, with the support of proxy advisors, have increasingly hijacked the proxy ballot process to advance political and social agendas that have little to do with a company’s business.
• These activist proposals force publicly traded manufacturers to take positions on contentious political issues and drive up costs for companies and other investors. Each shareholder proposal “can impose direct costs in excess of $150,000,” the 51�Թ��� noted.

More problems: Proxy advisory firms, which provide institutional investors with research and voting recommendations, are not subject to any meaningful oversight by the Securities and Exchange Commission.

• What’s more, two firms—Institutional Shareholder Services and Glass Lewis—control 97% of the U.S. proxy advice market and frequently have “significant conflicts of interest” when issuing their voting recommendations, the 51�Թ��� said.
• Further, these firms’ proxy research reports often include errors and misleading statements.

The background: Following years of 51�Թ��� advocacy, the SEC finalized a rule in July 2020 to rein in proxy firms and require them to notify their clients if companies had responses to their research reports.

• But the following year, after a change in presidential administrations, the SEC refused to enforce that rule and then gutted most of the reforms in the 2020 rule.
• This past July, the U.S. Court of Appeals for the D.C. Circuit ruled in a lawsuit brought by ISS that the SEC lacks the authority to regulate proxy advice.

What now? “Following the D.C. Circuit’s decision, it has become even more imperative for Congress to act to pass legislation that reaffirms the SEC’s authority to regulate proxy advice under the Exchange Act,” the 51�Թ��� said.

• The 51�Թ��� urged lawmakers to support SEC rulemaking that prohibits proxy firms from offering consulting services tainted by conflicts of interest and provide all American public companies covered by their research “with a reasonable opportunity” to review their draft reports.
• The 51�Թ��� also encouraged lawmakers to support rulemaking to modernize Rule 14a-8 by increasing the outdated $2,000 ownership requirement, updating the resubmission thresholds to exclude proposals rejected by investors and allowing companies to exclude activist proposals that raise environmental, social and political topics that are not material.

The final say: The 51�Թ��� thanked Chairman French Hill (R-AR) for holding the hearing on shareholder proposals and proxy firms. “We agree that the proxy process has been increasingly co-opted by activist investors who are pushing narrow political, social or personal agendas that harm manufacturers and Main Street investors,” the 51�Թ��� on X on Wednesday.  ​​​​​

The 51�Թ��� and six allied manufacturing groups Congress to modernize the 1975 Energy Policy and Conservation Act.

What’s going on: “After years of dramatic improvements in appliance efficiency, additional, meaningful, cost-justified energy savings are unlikely under EPCA’s current structure without forcing manufacturers and consumers to make tradeoffs in the form of features, performance and product availability,” the business associations said.

• EPCA created, among other things, the Energy Conservation Program for Consumer Products, which sets minimum efficiency standards for common household appliances and equipment.
• The 51�Թ��� was joined in this advocacy effort by the Association of Home Appliance Manufacturers, the Air-Conditioning, Heating and Refrigeration Institute, the Air Movement and Control Association International, the American Lighting Association, the North American Association of Food Equipment Manufacturers and the National Electrical Manufacturers Association.

Why it’s important: Yesterday, the House Energy and Commerce Committee held a hearing to discuss stricter EPCA efficiency standards enacted during the Biden administration.

• The joint release issued by the 51�Թ��� and other manufacturing groups called on the committee to help ensure that businesses and consumers can choose the appliances and equipment they want and that investments made by manufacturers are not undermined.

Next steps: Yesterday’s hearing is expected to act as a precursor to legislative action that the committee will consider in the coming weeks.

The 51�Թ��� says: “Manufacturers, including producers and users of energy, are committed to reducing our energy intensity and producing more energy-efficient consumer products to keep America leading in innovation, help reduce energy demand, save money and lower costs,” the 51�Թ��� the Department of Energy earlier this year. “Manufacturers strongly support sensible efficiency and waste-reduction measures across all sectors of the economy.”

• “The 51�Թ��� supports joint government–industry initiatives that enhance private-sector investment in public building efficiency improvement projects, policies that strengthen and harmonize standards for existing commercial, industrial and residential buildings and policies that recognize the incredible efficiency improvements manufacturers have made to products already.”

Yesterday, the Department of Health and Human Services released a second installment of the Make America Healthy Again Commission’s strategy report, focusing on nutrition and vaccines, among other topics ().

Industry response: The 51�Թ��� and manufacturers cautioned that HHS’s approach undermines the administration’s regulatory agenda.

• “Manufacturers share the administration’s goals of safeguarding Americans’ health and safety,” said 51�Թ��� President and CEO Jay Timmons. “However, in light of this administration’s exceptional track record to drive a rebalanced regulatory agenda to strengthen manufacturing and benefit consumers, the commission’s strategy report is a shocking misstep.”

The risks: “Manufacturers are concerned that policies based on faulty information and misguided science could result in overly burdensome and ineffective regulatory proposals for manufacturers without making consumers safer,” Timmons continued.

• “If implemented, the strategy would harm manufacturers across the country and the consumers who benefit from an efficient, healthy and cost-effective supply chain.”
• “It also would add to the compliance burden that the administration has made so many great strides to unwind. Manufacturers in the U.S. shoulder nearly $350 million every year in compliance costs—capital that manufacturers would much rather invest in their facilities, their employees and their products—and this administration has been a key partner in alleviating that burden.”

Safety safeguarded: “Manufacturers throughout the chemical, pharmaceutical, and food and beverage supply chains prioritize Americans’ health and safety,” Timmons emphasized.

• “They comply with strict regulatory guidelines and lead with innovation to deliver safe and reliable products, ensure resilient and secure supply chains, safeguard health, preserve consumer choice and enhance accessibility and affordability.”

The bottom line: “Manufacturers are committed to working with the administration to ensure our industry can continue to deliver safe, innovative and affordable products to American families. But the strategy of the MAHA report will take America in the wrong direction.”

51�Թ��� in action: The 51�Թ��� this week launched a  showcasing the vital role that manufacturers throughout the food and beverage supply chain play in strengthening families, building communities and driving the nation forward—and, of course, providing safe and nutritious food.